Virginia Code 54.1-2325: Deposit in preneed trust required upon sale of property or services not to be delivered within 120 days
A. Each cemetery company shall deposit into a trust fund at least forty percent of the receipts from the sale of property or services purchased pursuant to a preneed burial contract, when the delivery thereof will be delayed more than 120 days from the initial payment on said contract. The cemetery company shall establish a special trust fund in a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth. The trust shall bear the legend “Preneed Trust Account.” Deposits are required to be made by the cemetery company within thirty days after the close of the month in which said receipts are paid to it.
Terms Used In Virginia Code 54.1-2325
- Cemetery: means any land or structure used or intended to be used for the interment of human remains. See Virginia Code 54.1-2310
- Cemetery company: means any person engaged in the business of (i) selling or offering for sale any grave or entombment right in a cemetery and representing to the public that the entire cemetery, a single grave, or entombment right therein will be perpetually cared for; (ii) selling property or services, vaults, grave liners, urns, memorials, markers, and monuments used in connection with interring or disposing of the remains or commemorating the memory of a deceased human being, where delivery of the property or performance of the service may be delayed more than 120 days after receipt of the initial payment on account of such sale; or (iii) maintaining a facility used for the interment or disposal of the remains and required to maintain perpetual care or preneed trust funds in accordance with this chapter. See Virginia Code 54.1-2310
- Contract: A legal written agreement that becomes binding when signed.
- Month: means a calendar month and "year" means a calendar year. See Virginia Code 1-223
- Preneed: means at any time other than either at the time of death or while death is imminent. See Virginia Code 54.1-2310
- Seller: means the cemetery company. See Virginia Code 54.1-2310
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
B. If the purchaser’s payment is made on an installment or deferred payment basis, the seller shall have the option of paying each payment received into the preneed trust account.